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Conflict of Interest Policyof

Peoria AssociationArticle IPurpose

The purpose of the conflict of interest policy is to protect this tax-exemptorganization's (Organization) interest when it is contemplating entering into atransaction or arrangement that might enefit the pri!ate interest of an officer or "irectorof the Organization or might result in a possile excess enefit transaction# This policyis inten"e" to supplement ut not replace any applicale state an" fe"eral lawsgo!erning conflict of interest applicale to nonprofit an" charitale organizations#

Article II$efinitions

%# Intereste" Person

Any "irector& principal officer& or memer of a committee with go!erning oar" "elegate"powers& who has a "irect or in"irect financial interest& as "efine" elow& is an intereste"person#

# inancial Interest

A person has a financial interest if the person has& "irectly or in"irectly& throughusiness& in!estment& or family

a# An ownership or in!estment interest in any entity with which the Organizationhas a transaction or arrangement&

# A compensation arrangement with the Organization or with any entity orin"i!i"ual with which the Organization has a transaction or arrangement& or

c# A potential ownership or in!estment interest in& or compensation arrangementwith& any entity or in"i!i"ual with which the Organization is negotiating a transaction orarrangement#

Compensation inclu"es "irect an" in"irect remuneration as well as gifts or fa!ors that

are not insustantial#

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A financial interest is not necessarily a conflict of interest# *n"er Article III& +ection & aperson who has a financial interest may ha!e a conflict of interest only if the appropriatego!erning oar" or committee "eci"es that a conflict of interest exists#

Article III

Proce"ures

%# $uty to $isclose

In connection with any actual or possile conflict of interest& an intereste" person must"isclose the existence of the financial interest an" e gi!en the opportunity to "iscloseall material facts to the "irectors an" memers of committees with go!erning oar""elegate" powers consi"ering the propose" transaction or arrangement#

# $etermining ,hether a Conflict of Interest xistsAfter "isclosure of the financial interest an" all material facts& an" after any "iscussion

with the intereste" person& he.she shall lea!e the go!erning oar" or committeemeeting while the "etermination of a conflict of interest is "iscusse" an" !ote" upon#The remaining oar" or committee memers shall "eci"e if a conflict of interest exists#

/# Proce"ures for A""ressing the Conflict of Interest

a# An intereste" person may ma0e a presentation at the go!erning oar" orcommittee meeting& ut after the presentation& he.she shall lea!e the meeting "uring the"iscussion of& an" the !ote on& the transaction or arrangement in!ol!ing the possileconflict of interest#

# The chairperson of the go!erning oar" or committee shall& if appropriate&appoint a "isintereste" person or committee to in!estigate alternati!es to the propose"transaction or arrangement#

c# After exercising "ue "iligence& the go!erning oar" or committee shall"etermine whether the Organization can otain with reasonale efforts a morea"!antageous transaction or arrangement from a person or entity that woul" not gi!erise to a conflict of interest#

"# If a more a"!antageous transaction or arrangement is not reasonaly possileun"er circumstances not pro"ucing a conflict of interest& the go!erning oar" or

committee shall "etermine y a ma1ority !ote of the "isintereste" "irectors whether thetransaction or arrangement is in the Organization's est interest& for its own enefit& an"whether it is fair an" reasonale# In conformity with the ao!e "etermination it shallma0e its "ecision as to whether to enter into the transaction or arrangement#

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2# 3iolations of the Conflicts of Interest Policy

a# If the go!erning oar" or committee has reasonale cause to elie!e a

memer has faile" to "isclose actual or possile conflicts of interest& it shall inform thememer of the asis for such elief an" affor" the memer an opportunity to explain theallege" failure to "isclose#

# If& after hearing the memer's response an" after ma0ing further in!estigationas warrante" y the circumstances& the go!erning oar" or committee "etermines thememer has faile" to "isclose an actual or possile conflict of interest& it shall ta0eappropriate "isciplinary an" correcti!e action#

Article I3

4ecor"s of Procee"ings

The minutes of the go!erning oar" an" all committees with oar" "elegate"powers shall contain

a# The names of the persons who "isclose" or otherwise were foun" to ha!e afinancial interest in connection with an actual or possile conflict of interest& the natureof the financial interest& any action ta0en to "etermine whether a conflict of interest waspresent& an" the go!erning oar"'s or committee's "ecision as to whether a conflict ofinterest in fact existe"#

# The names of the persons who were present for "iscussions an" !otes relatingto the transaction or arrangement& the content of the "iscussion& inclu"ing anyalternati!es to the propose" transaction or arrangement& an" a recor" of any !otesta0en in connection with the procee"ings#

Article 3Compensation

a# A !oting memer of the go!erning oar" who recei!es compensation& "irectlyor in"irectly& from the Organization for ser!ices is preclu"e" from !oting on matters

pertaining to that memer's compensation#

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# A !oting memer of any committee whose 1uris"iction inclu"es compensationmatters an" who recei!es compensation& "irectly or in"irectly& from the Organization forser!ices is preclu"e" from !oting on matters pertaining to that memer's compensation#

c# 5o !oting memer of the go!erning oar" or any committee whose 1uris"iction

inclu"es compensation matters an" who recei!es compensation& "irectly or in"irectly&from the Organization& either in"i!i"ually or collecti!ely& is prohiite" from pro!i"inginformation to any committee regar"ing compensation#

Article 3IAnnual +tatements

ach "irector& principal officer an" memer of a committee with go!erning oar""elegate" powers shall annually sign a statement which affirms such person

a# 6as recei!e" a copy of the conflicts of interest policy&

# 6as rea" an" un"erstan"s the policy&

c# 6as agree" to comply with the policy& an"

"# *n"erstan"s the Organization is charitale an" in or"er to maintain its fe"eraltax exemption it must engage primarily in acti!ities which accomplish one or more of itstax-exempt purposes#

Article 3IIPerio"ic 4e!iews

To ensure the Organization operates in a manner consistent with charitale purposesan" "oes not engage in acti!ities that coul" 1eopar"ize its tax-exempt status& perio"icre!iews shall e con"ucte"# The perio"ic re!iews shall& at a minimum& inclu"e thefollowing su1ects

a# ,hether compensation arrangements an" enefits are reasonale& ase" oncompetent sur!ey information& an" the result of arm's length argaining#

# ,hether partnerships& 1oint !entures& an" arrangements with managementorganizations conform to the Organization's written policies& are properly recor"e"&

reflect reasonale in!estment or payments for goo"s an" ser!ices& further charitalepurposes an" "o not result in inurement& impermissile pri!ate enefit or in an excessenefit transaction#

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Article 3III*se of Outsi"e xperts

,hen con"ucting the perio"ic re!iews as pro!i"e" for in Article 3II& the Organizationmay& ut nee" not& use outsi"e a"!isors# If outsi"e experts are use"& their use shall not

relie!e the go!erning oar" of its responsiility for ensuring perio"ic re!iews arecon"ucte"#

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